On 1 February, during the budget announcement, when asked about the situation of bitcoin and crypto currencies, the finance minister of India stated that "Bitcoin will not be accepted as legal tender in India but the government will utilize the blockchain technology." He also said, "the government will try its best to stop the use of crypto currencies for illegal activities."
Here's a video by 
If we take it at the face value, this is not bad news for bitcoin in India.
Bitcoin has always "not been legal tender" and the finance minister's statement about it just clarifies the ambiguity about the status of Bitcoin and crypto currencies in general.
So why did it led to a mass panic sell and brought the price of bitcoin to nearly $4000?
Shortly after the announcement, news channels began reporting the statement but changed the details slightly.
The media distorted "not legal tender" to illegal and reported "the government will try its best to stop the use of cryptocurrencies" but did not include "for illegal activities".
As you can see in the news article below
This led to a panic among investors which led to mass selling and brought the price down to $4000 for a brief period. Unlucky for me, I was asleep at that time or I could have made some sweet profit.
This is not a bad news for crypto currencies
The fact that crypto currencies were mentioned in the parliament shows the growing popularity of crypto currencies in India.
My advise right now is that you should keep holding your crypto and buy the dip if possible. The markets have already recovered slightly and after a few months we might see the same heights as we saw last December.
Keep calm, be smart, stay happy.
